US Renewables and Battery Storage Set to Account for 99% of New Energy Capacity in 2026

Breaking: Renewables and Battery Storage Dominate U.S. Net New Capacity in 2025

U.S. renewable energy capacity and battery storage accounted for 99.2% of net new capacity through November 2025, according to the latest U.S. Energy Facts Management data. The surge underscores a rapid shift away from fossil‑fuel generation and positions renewables as the second‑largest electricity source behind natural gas.

Solar Leads Growth surge

Utility‑scale solar thermal and photovoltaic installations grew 34.5% year‑over‑year,while small‑scale rooftop systems rose 11.3% in the first 11 months of 2025. Combined, solar contributed just under 9% of total U.S. electricity generation,up from 7.1% a year earlier.

Wind Gains Momentum

wind turbines generated 10.1% of national electricity during the same period, a 1.2‑percentage‑point increase from 2024.november alone saw a 2.0% boost in wind output compared with the prior year.

Overall Renewable Share Expands

The full renewable mix—including wind, solar, hydropower, biomass, and geothermal—produced 25.7% of U.S.electricity in 2025, a rise from 24.3% in 2024. This marks the first time renewables have eclipsed all sources except natural gas, whose output fell 3.7%.

Capacity Additions at a Glance

Metric	2025 (Jan‑Nov)	2024 (Jan‑Nov)
Net new renewable capacity (incl. storage) (MW)	45,198.1	—
Net change in fossil & nuclear capacity (MW)	‑519.2	—
Natural‑gas capacity increase (MW)	3,960.7	—
Coal capacity decrease (MW)	‑3,387.0	—

What This Means for the Future

Analysts at the International Renewable Energy Agency warn that sustained policy support will be crucial to maintain this trajectory. Battery storage, now integral to the renewable mix, is expected to double its installed capacity by 2028, further smoothing intermittency challenges.

Will continued investment in clean energy keep fossil‑fuel capacity in decline? How will utilities adapt grid operations as storage becomes a core asset?

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What factors are driving the projection that 99% of new energy capacity in the US by 2026 will come from renewables and battery storage?

US Renewables and Battery Storage Set to Account for 99% of New Energy Capacity in 2026

The US energy landscape is undergoing a dramatic transformation. as of February 1st, 2026, projections indicate that a staggering 99% of new energy capacity additions will come from renewable sources and paired battery storage systems. This isn’t just a trend; it’s a fundamental shift driven by economics, policy, and a growing demand for sustainable power. This article dives into the specifics of this change, exploring the key drivers, technologies involved, and what it means for the future of energy in the United States.

The Rise of Renewable Energy Sources

For years, renewable energy sources like solar and wind have been steadily gaining ground. However, recent advancements and cost reductions have propelled them to the forefront of energy expansion. Several factors contribute to this surge:

* Decreasing Costs: The levelized cost of energy (LCOE) for solar and wind has plummeted over the past decade, making them increasingly competitive with conventional fossil fuels.

* Federal Incentives: Policies like the Investment Tax Credit (ITC) and Production Tax Credit (PTC) continue to incentivize renewable energy growth. The Inflation Reduction Act of 2022 substantially extended and expanded these credits,providing long-term certainty for investors.

* State Renewable Portfolio Standards (RPS): Many states have established RPS mandates, requiring utilities to source a certain percentage of their electricity from renewable sources.

* Corporate Sustainability Goals: A growing number of corporations are setting ambitious renewable energy targets, driving demand for clean power purchase agreements (PPAs).

Battery Storage: The Key Enabler

While renewable energy sources are inherently clean, their intermittent nature – the sun doesn’t always shine, and the wind doesn’t always blow – has historically been a challenge. This is where battery storage comes in.

Battery storage systems, particularly lithium-ion batteries, are becoming increasingly affordable and efficient. They address the intermittency issue by:

* Storing Excess Energy: Capturing energy generated during peak production periods (e.g., sunny afternoons, windy days) for use when generation is low.

* Grid Stabilization: Providing ancillary services like frequency regulation and voltage support,enhancing grid reliability.

* Peak Shaving: Reducing demand charges by discharging stored energy during peak demand periods.

* Resilience: Offering backup power during grid outages, improving energy security.

The co-location of renewable energy projects with battery storage is now standard practice,maximizing the value of renewable generation and ensuring a more reliable power supply.

Leading Technologies & Regional Trends

Several technologies are driving this expansion. Solar photovoltaic (PV) remains the dominant renewable energy source,followed by wind power. However, other technologies are gaining traction:

* Solar PV: Utility-scale solar farms, rooftop solar installations, and community solar projects are all contributing to growth.

* Wind Power: onshore wind continues to be a major player, while offshore wind is poised for significant expansion along the Atlantic coast.

* Battery Technologies: Lithium-ion is currently the most prevalent battery technology, but flow batteries and other emerging technologies are being developed for longer-duration storage.

* Geothermal Energy: while a smaller contributor geothermal energy provides a consistent,baseload renewable power source in certain regions.

Regionally, the Southwest (california, Arizona, nevada) is leading the charge in solar development, while the Great Plains (Texas, Oklahoma, Kansas) are experiencing rapid wind energy growth. States like Massachusetts and New York are actively promoting offshore wind projects.

Impact on the Existing Grid Infrastructure

The influx of renewable energy and battery storage is placing new demands on the existing grid infrastructure. upgrades are needed to:

* Transmission Capacity: Expanding transmission lines to connect renewable energy resources to load centers.

* Grid Modernization: Implementing smart grid technologies to improve grid visibility,control,and flexibility.

* Distribution System Upgrades: Strengthening distribution networks to accommodate distributed generation from rooftop solar and community solar projects.

* Interconnection Procedures: Streamlining the process for connecting renewable energy projects to the grid.

Investments in grid infrastructure are crucial to unlocking the full potential of renewable energy and ensuring a reliable and resilient power system.

Case Study: California’s Energy Transition

california serves as a compelling case study in renewable energy adoption. the state has consistently led the nation in renewable energy deployment, driven by ambitious policy goals and a supportive regulatory environment.

In 2023,california achieved a record-breaking 65% renewable energy penetration.This success is attributed to:

* aggressive RPS Targets: California’s RPS mandates require utilities to source 100% of their electricity from carbon-free sources by 2045.

* Energy Storage Mandates: The state has also established mandates for energy storage deployment, accelerating the growth of battery storage capacity.